Bank Of England MPC - Interest Rates CUT to 0.25% + QE increase £60 Billion

iantojones40

Jack_Johnson_the_acorn wrote: »

This is fantastic news for homeowners. How does this affect you Crashy?

Why is this fantastic news for people who own their own home?

mwpt

Graham_Devon wrote: »

The BOE, specifically Mark Carney was actually stating that your mortgage would likely increase due to interest rate rises if the result was brexit. They would rise because the pound would fall. Since then, the BOE have done everything in their power it seems to devalue sterling.

Many people on this very forum were throwing the same scare story around.

I don't really care what Carney said. He is a politician just like any other, lies when he needs to. It was obvious that interest rates would be cut and QE used in the event of the DIY brexit recession. That is the thing I don't get about HPC, at some level they must know what the government is going to do yet they suppress any divergent thoughts.

Graham_Devon

Thrugelmir wrote: »

Going to heap even more pressure on the underfunded Company schemes. Cause people to cut back back on spending in order to save more. Encourage people to chase yield in risky investments rather than safe deposit accounts. Put even more pressure on bank lending margins.

The race to the bottom continues. While the £ in our pockets becomes ever worthless.

Just listened to a business owner who deals with chinese inputs as his staple good. He doesn't want more debt. He states this is just going to make it even harder for him to stay competitive as the pound reduces again. The only way therefore for him to cut costs is to look at reducing staff.

He feels the BOE seems concerned only by those taking on more debt, trying to sell an idea that you are wealthier if the increased debt is cheaper than it was last week.

mwpt

Thrugelmir wrote: »

Going to heap even more pressure on the underfunded Company schemes. Cause people to cut back back on spending in order to save more. Encourage people to chase yield in risky investments rather than safe deposit accounts. Put even more pressure on bank lending margins.

The race to the bottom continues. While the £ in our pockets becomes ever worthless.

I agree with much of that.

Graham_Devon

mwpt wrote: »

I don't really care what Carney said. He is a politician just like any other, lies when he needs to. It was obvious that interest rates would be cut and QE used in the event of the DIY brexit recession. That is the thing I don't get about HPC, at some level they must know what the government is going to do yet they suppress any divergent thoughts.

If it was obvious, did you state so before the referendum?

With respect, all I saw from the remainers was passing on the idea that interest rates would increase and your mortgage would cost more. It was even used in one of the main TV debates.

Just saying what I saw. Would be refreshing if you did state this would happen if it were so obvious as I know you were involved in the debates.

wotsthat

Graham_Devon wrote: »

What's your view though - we know your views on other peoples views as you are always letting us know.

What will this actually achieve, apart from more (and likely false) sentiment in the housing market, specifically for those who ar emore likely to be willing to take on larger debts?

One of the issues this morning raised on 5 live was that people are cutting back spending because they have to. Cost of renting increasing, already maxed out on debt etc etc. How does increasing the cost of housing (via this stimulus) help any of that?

A fall of 0.25% and £60bn QE is nothing more than a signal from the BoE - it's noise.

mrginge

mwpt wrote: »

I don't really care what Carney said. He is a politician just like any other, lies when he needs to. It was obvious that interest rates would be cut and QE used in the event of the DIY brexit recession. That is the thing I don't get about HPC, at some level they must know what the government is going to do yet they suppress any divergent thoughts.

Apparently people who don't listen to experts are swivel-eyed racists.

wotsthat

Thrugelmir wrote: »

Going to heap even more pressure on the underfunded Company schemes. Cause people to cut back back on spending in order to save more. Encourage people to chase yield in risky investments rather than safe deposit accounts. Put even more pressure on bank lending margins.

The race to the bottom continues. While the £ in our pockets becomes ever worthless.

Come on. As a result of this change in base rates just how much are you going to cut back on spending to save instead?

mwpt

Graham_Devon wrote: »

If it was obvious, did you state so before the referendum?

Yes. Well, actually, on the day of the outcome of the referendum, but my thought process was already there, and this was before anything had actually changed:

See here:
https://forums.moneysavingexpert.com/discussion/comment/70882375#Comment_70882375

Just saying what I saw. Would be refreshing if you did state this would happen if it were so obvious as I know you were involved in the debates.

I didn't take much part in discussing many of the doom stories because I was and am unconvinced on how the economics will play out. I suspect, not so bad as a doom story, but not great. I still think it was the wrong decision.

And as I showed above, my thoughts were already formed on the implications on rates, QE and housing market in the event of brexit.

Graham_Devon

wotsthat wrote: »

Come on. As a result of this change in base rates just how much are you going to cut back on spending to save instead?

You've been saying yourself that a brexit will cost people more as sterling is damaged.

However, the biggest damage to sterling has come from Carney talking the economy down, and now, this.

If things are costing people more, people have less left over to save or, have to cut back on other stuff.

This may not effect you or I all that much. But let's not pretend there isn't swathes of the population out there, both young and old whom are on fixed incomes whom this will hurt.